PRINTER'S NO. 724
No. 645 Session of 1975
INTRODUCED BY TOLL, FINEMAN, SCHMITT, GILLETTE, WANSACZ, KERNICK, GEISLER, FLAHERTY, JOHNSON, RAPPAPORT, OLIVER, GIAMMARCO, DiDONATO, GILLESPIE, O'KEEFE, DAVIS, MILANOVICH, RICHARDSON, COHEN AND SHELTON, MARCH 4, 1975
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, MARCH 5, 1975
AN ACT 1 Regulating the business of repairing motor vehicles; providing 2 for the licensing of persons engaged therein; prescribing 3 powers and duties of the Secretary of Transportation; 4 prescribing penalties and making an appropriation. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Statement of Purpose.--By establishing equipment 8 standards for motor vehicles and requiring inspection of motor 9 vehicles the General Assembly has taken major steps to assure 10 the mechanical safety of motor vehicles operated on the highways 11 of this Commonwealth. The purposes of this act are to further 12 highway safety by promoting the proper and efficient repair of 13 motor vehicles and to protect the consumers of this Commonwealth 14 from dishonest and fraudulent practices in the repair of motor 15 vehicles. These purposes will be accomplished by the enactment 16 of legislation to license those engaged in repairing motor 17 vehicles and to exclude from that practice those persons who 18 engage in dishonest and fraudulent practices.
1 Section 2. Short Title.--This act shall be known, and may be 2 cited, as the "Pennsylvania Motor Vehicle Repair Act." 3 Section 3. Definitions.--As used in this act: 4 "Business of repairing motor vehicles" shall mean the repair 5 or adjustment of motor vehicles for compensation. 6 "Secretary" shall mean the Secretary of Transportation of the 7 Commonwealth of Pennsylvania. 8 Section 4. License; Application; Fees and Issuance of 9 Licenses.--(a) On and after August 1, 1975, no business which is 10 not the holder of a license issued pursuant to this act shall 11 engage in the business of repairing motor vehicles: Provided, 12 however, That no license shall be required of any business where 13 the only repairs or adjustments performed by such business 14 consists of fueling, changing oil, water or batteries or such 15 other similar servicing functions, or the making of such repairs 16 and adjustments not directly related to mechanical operation of 17 the vehicles as the secretary may prescribe. 18 (b) An application for one or more licenses shall be filed 19 with the secretary in such form and detail as the secretary 20 shall prescribe, setting forth: 21 (1) The name and residence address of the applicant; if an 22 individual, the name under which he intends to conduct business; 23 if a partnership, the name and residence address of each member 24 thereof, and the name under which the business is to be 25 conducted; if a corporation, the name of the corporation, the 26 name and residence address of each of the officers and 27 directors, and the name under which the business is to be 28 conducted, if different from the name of the corporation. 29 (2) The place or places, including the complete address or 30 addresses where the business is to be conducted. 19750H0645B0724 - 2 -
1 (3) Such further information as the secretary may prescribe. 2 The secretary may require the applicant to appear at such time 3 and place as he may designate for examination to enable him to 4 determine the accuracy of the facts set forth in the written 5 application, either for an initial license or renewal thereof. 6 Every application shall be affirmed as true by the applicant. 7 (c) Every application shall be accompanied by an application 8 fee of $15 which shall in no event be refunded. If an 9 application is approved by the secretary upon payment by the 10 applicant of an additional fee of $25 for each place of 11 business, the applicant shall be granted a license for each 12 place of business, which license or licenses shall be valid for 13 a period of one year. The secretary may, however, in his 14 discretion, issue such licenses on a staggered expiration basis 15 in which event such additional fee for each license initially 16 issued for a period less than one year shall be $2 per month or 17 part thereof during which such license is valid and for each 18 license initially issued for greater than one year shall be $25, 19 plus $2 per month for each month or part thereof, in excess of 20 12 months during which such license is valid. In the event a 21 license is issued on a staggered expiration basis it shall 22 expire on the date fixed by the secretary. The annual fee for 23 renewal of any license issued pursuant to this act shall be $25. 24 The secretary shall issue a license certificate to each 25 applicant pursuant to the provisions of this act, which 26 certificate shall be conspicuously displayed in the licensee's 27 place of business for which such license was issued. In the case 28 of loss, mutilation or destruction of a license certificate, the 29 secretary shall issue a duplicate certificate thereon upon proof 30 of the facts and the payment of a fee of $2. 19750H0645B0724 - 3 -
1 (d) (1) If a license under this act shall be issued in the 2 names of two or more persons as partners and a change occurs in 3 the membership of such partnership, the license shall not expire 4 thereupon so long as any one of the persons named in such 5 license is a member of the partnership or carries on the 6 business of the partnership as surviving member of the 7 partnership. However, when any change occurs and the license 8 does not expire, the partner or surviving member shall forthwith 9 file with the secretary a statement regarding such partnership 10 in such form and give such information as the secretary shall 11 require, together with the fee of $2, and the secretary shall 12 issue a new license. Such new license shall expire on the 13 expiration date of the license replaced. 14 (2) Where the business is conducted under a franchise, lease 15 or other similar arrangement, the secretary, in his discretion, 16 may require the application to be submitted by the franchise 17 holder, lessee or other person actually responsible for the 18 person conducting the business. 19 Section 5. Authorization for Repairs.--No repairs shall be 20 undertaken by a licensee without written authorization of the 21 owner or his authorized agent for repairs to the vehicle in 22 question, in the event that the repairs shall exceed $100. The 23 authorization shall not be binding for any work that is not 24 necessary under prevailing standards of the profession. The 25 authorization does not limit or eliminate the licensee's 26 obligation to perform in a workmanlike and acceptable manner. 27 This provision regarding the licensee's duty shall be printed in 28 12-point bold type at the top of the authorization. 29 Section 6. Itemized Bill.--No person upon whose behalf 30 repairs have been made in accordance with the provisions of this 19750H0645B0724 - 4 -
1 act shall be liable for payment thereof which is not presented 2 in a written bill containing at least the description of work 3 performed, description of parts (including catalogue number) and 4 cost of each part and the total cost of parts and the number of 5 hours of labor, the cost per hour and the total cost of labor. 6 Section 7. Business Records.--Every licensee shall prepare 7 and maintain at the place of business records on every 8 automotive vehicle repair job, and such records shall be 9 available for inspection by the secretary or his representative 10 for a minimum period of one year and shall contain: 11 (1) All changes of engine, frame and body numbers. 12 (2) Date job accepted, full name and address of party 13 ordering the work. 14 (3) Make, body, type, license number, serial number and 15 odometer reading at the time of repair. 16 Section 8. Credit and Deferred Payment Plans.--(a) Every 17 licensee who arranges or uses credit or deferred payment plans 18 in connection with motor vehicle repairs shall supply the 19 customer in writing the following information prior to entering 20 into any agreement: 21 (1) The name of the party or finance firm to whom the repair 22 contract is to be assigned or sold. 23 (2) The true interest rate per year and all other charges in 24 connection with financing that may attach to the contract. 25 (b) If the customer chooses to accept a credit plan or 26 deferred payment plan, a separate contract shall be made listing 27 the following information and signed by the dealer and the 28 person responsible for the indebtedness: 29 (1) The name of the party or finance company handling the 30 credit or deferred payment plan. 19750H0645B0724 - 5 -
1 (2) The total price of labor and parts plus tax. 2 (3) The amount of down payment if any. 3 (4) The amount of each payment and number of such payments. 4 (5) All charges to be added to the contract regardless of 5 motive. 6 (6) The total amount to be paid. 7 (7) The due date and penalties for late payment. 8 Section 9. Suspension, Revocation or Refusal to Issue or 9 Renewal of a License; Civil Penalty; Surrender of License.--(a) 10 The secretary may deny the application of any person for a 11 license and may suspend or revoke a license pursuant to act or 12 refuse to issue a renewal thereof if he determines that such 13 applicant or licensee: 14 (1) Has knowingly having within three years prior to the 15 issuance of the license then in force or while his current 16 license is in force pleaded guilty, entered a plea of nolo 17 contendere or has been found guilty in a court of competent 18 jurisdiction of this or any other state of forgery, fraud, 19 embezzlement, obtaining money under false pretenses, extortion, 20 conspiracy to defraud, bribery or any other crime involving 21 moral turpitude. 22 (2) Has knowingly failed or refused to account for or to pay 23 over moneys or other valuables belonging to others which have 24 come into his possession arising out of the repair of motor 25 vehicles. 26 (3) Has engaged in false, deceptive or misleading 27 advertising of motor vehicle repairs. 28 (4) Has committed any act or engaged in conduct in 29 connection with the repair of motor vehicles which clearly 30 demonstrated incompetency by accepted industry standards. 19750H0645B0724 - 6 -
1 (5) Has made a material misstatement or concealed a material 2 fact in application for a license. 3 (6) Has grossly overcharged any person for repairs to a 4 motor vehicle. 5 (7) Has misrepresented necessary repairs to a customer, or 6 having defrauded any customer by performing unnecessary repairs. 7 (8) Has conspired with any person to provide rebates or 8 commissions for the towing or repair but excluding sublet 9 repairs of motor vehicles. 10 (9) Has caused or allowed a customer to sign any work order 11 which does not state the repairs requested by the customer and 12 the automobile's odometer reading at the time of repair. 13 (10) Has refused to give a customer a copy of any document 14 requiring his signature as soon as the customer signs such 15 document. 16 (11) Has in the repair and maintenance of motor vehicles, 17 performed any act which constitutes a departure from or 18 disregard of accepted trade standards of good workmanlike 19 repairs in any material respect, which action is prejudicial to 20 the owner of the motor vehicle and which would be known as such 21 a departure or disregard by any ordinary and reasonable dealer 22 or mechanic in the trade. 23 (12) Has knowingly made a false promise of a character 24 likely to influence, persuade or induce a consumer to authorize 25 the repair and maintenance of a motor vehicle. 26 (13) Has attempted to enter into or entered into any 27 contract or obligation for the repair and maintenance of a motor 28 vehicle which shall contain a provision by which a consumer: 29 (i) waives any right of action against the dealer or 30 other person acting in the dealer's behalf for any 19750H0645B0724 - 7 -
1 unlawful act committed by the dealer or his agents; or 2 (ii) relieves the dealer from any liability for any 3 legal remedies which the consumer may have against the 4 dealer. 5 (14) Was the former holder of a license issued hereunder 6 which was revoked or suspended by the secretary. 7 (15) Was, or that any officer, director, partner or 8 stockholder holding more than 10% of the outstanding stock, was 9 an officer, director, partner or stockholder holding more than 10 10% of the outstanding stock in a corporation or partnership 11 which was the former holder of a license issued hereunder which 12 was revoked or suspended by the secretary. 13 (16) Has failed to furnish satisfactory evidence of good 14 character, reputation and fitness. 15 (17) Does not have a place of business as required by this 16 act. 17 (18) Is not the true owner of the repair shop, except where 18 the secretary has issued a license to a franchise holder or 19 person actually conducting the motor vehicle repair business 20 pursuant to the provisions of section 4(d)(2). 21 (19) Has failed to comply with the rules and regulations 22 promulgated by the secretary or any of the provisions of this 23 act. 24 (b) The secretary in addition to, or in lieu of revoking or 25 suspending the license of a licensee in accordance with the 26 provisions of this act may in any one proceeding, order, the 27 licensee to pay to the Commonwealth, a penalty in a sum not 28 exceeding $100 for each violation, and not exceeding $500 in the 29 aggregate for all violations, and upon the failure of such 30 licensee to pay such penalty within 20 days of the mailing of 19750H0645B0724 - 8 -
1 such order, postage prepaid, registered, and addressed to the 2 last known place of business of such licensee, unless such order 3 is stayed by an order of a court of competent jurisdiction may 4 revoke the license of such licensee or may suspend the same for 5 such period as he may determine. Penalty provided in this 6 section may be recovered by action brought by the secretary in 7 any court of competent jurisdiction. Such penalty may be 8 released or compromised by the secretary before the matter has 9 been referred to the Attorney General of the Commonwealth of 10 Pennsylvania and where such matter has been referred to the 11 Attorney General any such penalty may be released or compromised 12 and any action commenced to recover the same may be settled and 13 discontinued by the Attorney General with the consent of the 14 secretary. 15 (c) Any licensee holding or possessing a license certificate 16 which has been suspended or revoked pursuant to this act, who 17 fails to deliver the same to the suspending or revoking officer 18 or to any peace officer directed by the secretary to secure 19 possession thereof, is guilty of a misdemeanor, and upon 20 conviction thereof, shall be sentenced to undergo imprisonment 21 for not more than six months or to pay a fine not exceeding 22 $500, or both. 23 Section 10. Hearings; Judicial Review.--(a) No license shall 24 be suspended or revoked or penalty imposed until after a hearing 25 upon written notice to the licensee has been heard before an 26 officer or employee designated by the secretary: Provided, 27 however, That where a notice of hearing is mailed to a licensee 28 at the address shown in the records of the secretary and such 29 licensee fails to attend such hearing, the secretary may suspend 30 his license without a hearing. Upon the denial of an application 19750H0645B0724 - 9 -
1 for a license the secretary shall grant a hearing to an 2 applicant therefor upon receipt of a request for such a hearing 3 made within 30 days after the applicant is notified of such 4 denial. In the event a license is revoked or an application is 5 denied, no license shall be issued to such former licensee or 6 applicant for at least six months nor thereafter, except in the 7 discretion of the secretary. The applicant or licensee may be 8 heard in person or by counsel. Such hearings shall be at such 9 time and place as the secretary shall prescribe. The secretary, 10 or his designate, shall have the power of subpoena and may bring 11 before him or his designate, any person in this Commonwealth or 12 document, record or other relevant evidence. He shall have the 13 power to administer oaths and take the testimony of any such 14 person or cause his deposition to be taken. A subpoena issued 15 under this act shall be regulated by the Pennsylvania Rules of 16 Civil Procedure. 17 (b) All actions of the secretary shall be taken subject to 18 the right of notice, hearing and adjudication and the right of 19 appeal therefrom, in accordance with the provisions of the act 20 of June 4, 1945 (P.L.1388, No.442), known as the "Administrative 21 Agency Law," or any amendments or reenactment thereof, relating 22 to adjudication procedure. 23 Section 11. Regulations.--The secretary shall prescribe such 24 reasonable rules and regulations as he shall deem necessary to 25 carry out the provisions of this act. 26 Section 12. Complaints and Investigations.--In addition to 27 the powers and duties elsewhere prescribed in this act, the 28 secretary upon receipt of any complaint or by his own initiative 29 shall have the power to make such investigations as he deems 30 proper to effectuate the purposes of this act. The provisions of 19750H0645B0724 - 10 -
1 this act relating to the attendance of licensees at hearings and 2 the powers of subpoena shall apply to investigations conducted 3 under the provisions of this act. 4 Section 13. Inspectors.--The Secretary of the Pennsylvania 5 Department of Transportation is hereby authorized to hire as 6 many inspectors as he needs in order to enforce the provisions 7 of this act. 8 Section 14. Appropriation.--The sum of $50,000, or so much 9 thereof as may be necessary, is hereby appropriated to the 10 Department of Transportation for use in carrying out the 11 provisions of this act. 12 Section 15. Effective Date.--This act shall take effect 13 immediately. B26L50CVV/19750H0645B0724 - 11 -